EFFECT OF COMPANY INCOME TAX AND STAMP DUTIES TAX ON FINANCIAL PERFORMANCE OF LISTED MANUFACTURING COMPANIES IN NIGERIA

Abstract

This study investigates the impact of Company Income Tax (CIT) and Stamp Duties Tax (SDT) on the financial performance of listed manufacturing companies in Nigeria. Utilizing a sample of five firms-Guinness Nigeria Plc, Honeywell Flour Mills Plc, Nestlé Nigeria Plc, Flour Mills of Nigeria Plc, and Nigerian Breweries Plc-over a ten-year period from 2014 to 2023, the research employs a combination of descriptive statistics and regression analysis to evaluate the relationship between these taxes and Return on Assets (ROA). The descriptive statistics reveal that the average ROA is 0.0863 with a standard deviation of 0.07327, while CIT averages 3.0933 with a standard deviation of 0.07208, and SDT averages 1.1533 with a standard deviation of 0.45994. Regression analysis results show a significant positive effect of CIT on financial performance, with a coefficient of 0.139 and a p-value of 0.049, indicating a meaningful impact on ROA. In contrast, SDT exhibits no significant effect on ROA, with a coefficient of 0.016 and a p-value of 0.863. These findings suggest that while CIT plays a critical role in influencing financial outcomes, SDT does not substantially affect the financial performance of the firms studied. The results underscore the need for targeted policy adjustments concerning CIT and a reassessment of SDT's role within the tax system.